After upgrading to the latest version, I'm having tons of problems with Skitch. It crashes my Dock and hides some of the application windows. I have reasons to believe it has something to do with Spaces.
I think the source of the problem is having Skitch "Show on all Spaces" and trying to drag Skitch window from one space to another, by taking it to the edge of the screen.
Anyway, I've disabled the "Show on all Spaces" and it seems to be OK for now.
Skitch refuses to open for me. It won't open on startup or when I open it directly. I'm running a PowerBook (PPC) with the most recent Apple updates. I really enjoy Skitch and this makes me sad.